AA To Reduce Intl Flights Due To 787 Delay
12-11-2021, 08:16 AM
#11
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Joined APC: May 2021
Posts: 314
Originally Posted by nAAtive
Not really. Of course, high load factors are important. But look at loads during ski season going into eagle or Gunnison. Full there and empty back depending on the day. And those routes are highly profitable. AA hasn’t been making money on full Asia flights either.
12-11-2021, 08:17 AM
#12
Covfefe
Joined APC: Jun 2015
Posts: 3,001
Originally Posted by Setspeed
Umm what? Yes it is. Not entirely, but it is a component.
From a higher level on this same issue, with the amount of growth UA has planned, along with growth at B6, NK, F9, WN, breeze, and maybe DL/AA?, maybe avelo and airbahn and whoever else, it sure seems like there will be a ton of capacity coming over the next few years, with potentially low fares as a result. https://www.fool.com/investing/2021/...-too-ambitiou/. Hopefully that isn’t the case and everyone does well. But I’m not entirely optimistic.
12-11-2021, 12:25 PM
#13
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Joined APC: Nov 2013
Posts: 1,766
Originally Posted by BeatNavy
You could fill every seat in a triple and lose money when the tickets are only $49-$99 (just did a quick check for today and the next few days on that route on the AA app). Even same day fares are $99…Tuesday is $49. Lie-flats are $369. Tough to make money with fares that low, even with full flights.
From a higher level on this same issue, with the amount of growth UA has planned, along with growth at B6, NK, F9, WN, breeze, and maybe DL/AA?, maybe avelo and airbahn and whoever else, it sure seems like there will be a ton of capacity coming over the next few years, with potentially low fares as a result. https://www.fool.com/investing/2021/...-too-ambitiou/. Hopefully that isn’t the case and everyone does well. But I’m not entirely optimistic.
From a higher level on this same issue, with the amount of growth UA has planned, along with growth at B6, NK, F9, WN, breeze, and maybe DL/AA?, maybe avelo and airbahn and whoever else, it sure seems like there will be a ton of capacity coming over the next few years, with potentially low fares as a result. https://www.fool.com/investing/2021/...-too-ambitiou/. Hopefully that isn’t the case and everyone does well. But I’m not entirely optimistic.
12-11-2021, 12:47 PM
#14
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Joined APC: Jun 2018
Posts: 184
Originally Posted by Setspeed
Which is where the rest of that equation comes in... fuel cost, aircraft efficiency, ticket prices that consumers are willing to pay (and in your example, high enough that it doesn't matter the return load), etc. But to say load factor isn't an indication isn't true.
12-11-2021, 04:29 PM
#15
Banned
Joined APC: May 2017
Posts: 2,012
Originally Posted by nAAtive
True, but also saying that they are fine making money because flights are full definitely isn’t true.
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